European stocks rallied on Thursday, driven by positive developments in the Asia-Pacific markets. The pan-European Stoxx 600 rose 1.25%, with most sectors and major stock exchanges showing gains by the end of the trading day.

Household goods stocks were the top performers, surging by 4.6%. Mining companies and tech firms followed closely, with respective gains of 4.3% and 3%. On the other hand, energy stocks suffered losses, falling by 3% due to a drop in crude oil prices. This decline came after reports that Saudi Arabia is considering moving away from its informal $100 per barrel oil price target. Major oil companies like BP, Shell, and TotalEnergies saw their stocks drop more than 3% by the end of the session.

The overall upbeat atmosphere in Europe was partly fueled by a strong performance in Asian markets earlier in the day. Hong Kong’s Hang Seng Index jumped 4.16%, hitting its highest level since May, while China’s CSI 300 continued its positive streak, gaining for the seventh consecutive day. The rise in Chinese and Hong Kong stocks was attributed to an announcement from Chinese state media, revealing that top officials had reaffirmed their commitment to bolstering the economy. Japan also saw a positive day, with the Nikkei 225 climbing 2.79% and the Topix Index up 2.66% after the release of minutes from the Bank of Japan’s July meeting.

In Europe, luxury goods companies led the charge. Shares of French giants LVMH and Kering were among the biggest winners, with LVMH closing 9.5% higher and Kering rising by 9.6%.

However, not all stocks enjoyed gains. Swedish retailer H&M saw its shares fall by 4.6% after reporting lower-than-expected operating profits and abandoning its earnings margin target.

The Swiss National Bank (SNB) also made headlines by cutting its key interest rate by 0.25%, lowering it to 1.0%. This widely anticipated move marked the SNB’s third interest rate reduction of 2024, aimed at easing borrowing costs.

Meanwhile, across the Atlantic, U.S. stocks also ended higher on Thursday. Positive economic data, including a drop in weekly jobless claims and stable durable goods orders, helped boost investor confidence. Additionally, the U.S. GDP for the second quarter remained steady at 3%, in line with earlier estimates.

Igor Spirido

Source: www.cnbc.com